Restructuring Unitranche Facilities: Navigating the Unique Aspects of Agreements Among Lenders

Outline

1. Unique inter-lender issues to a unitranche loan facility
2. Power to consent to restructuring a unitranche loan facility
3. Right to exercise remedies before the commencement of a bankruptcy proceeding
4. Rights of first-out lenders to stop the exercise of remedies
5. Rights of last-out lenders to stop the exercise of remedies
6. Consequences that may result from an exercise of remedies
7. Rights of last-out lender following the commencement of a bankruptcy proceeding
8. Pitfalls and opportunities for first-out lenders and last-out lenders in connection with financing a bankruptcy proceeding
9. Rights of first-out lenders and last-out lenders concerning 363 sales in a bankruptcy proceeding
10. Pitfalls and opportunities for first-out lenders and last-out lenders in plan classification and voting disputes
11. Rights of first-out lenders and last-out lenders concerning reorganization securities
12. Pitfalls and opportunities for first-out lenders and last-out lenders in a cramdown plan and the potential impact on state law causes of action to enforce the AAL

Benefits

The panel will review these and other key issues:

• What are the unique aspects of unitranche loan facilities, and what is the interplay of those aspects in restructuring and working out of a troubled loan?
• How does the AAL impact the rights of first-out and last-out lenders to exercise remedies outside of bankruptcy?
• What are the respective rights of first-out and last-out lenders in the context of a bankruptcy proceeding?